In The Boardroom With...
Mr. Mark L. Kay
Chairman and CEO
StrikeForce Technologies, Inc
Updated November 25, 2015
SecurityStockWatch.com: Mark, thank you for joining us again today. What are the latest developments at StrikeForce?
Updated August 24, 2015
"On August 24, 2015, the Company entered into an asset purchase and licensing agreement with Cyber Safety, Inc., a New York corporation ("Cyber Safety") to license and retain an option to purchase the patents and Intellectual Property related to the GuardedID and MobileTrust software (the "Asset Purchase Agreement") for a purchase price of Nine Million Dollars
($9,000,000), which may be paid in the form of a promissory note due by and no later than September 30, 2020. Pursuant to the terms and conditions of the Asset Purchase Agreement, Cyber Safety will license and have the option
to purchase the white label version of the "GuardedID" software for up to $120,000 of development and the MobileTrust software products. StrikeForce's license granted to Cyber Safety does not affect or impact existing distributor relationships. StrikeForce, directly and through its distribution channel, will maintain the right to sell in the retail space in perpetuity.
As a condition of the Asset Purchase Agreement, Cyber Safety will license the Malware Suite (as defined in the Asset Purchase Agreement) up to and until September 30, 2020. Pursuant to this license, Cyber Safety shall compensate the Company with fifteen percent (15%) of the net amount Cyber
Safety receives (defined as the amount received by Cyber Safety from the sale or licensing of the Malware Suite), which amount may be increased to twenty percent (20%) under certain conditions, and is subject to reduction for commissions and support costs Cyber Safety will pay StrikeForce. In conjunction with the licensing, the Company has executed a Distributor and Reseller Agreement with Cyber Safety, dated August 24, 2015 (the"Distributor and Reseller Agreement").
In conjunction with the licensing and the option to purchase, Cyber Safety will loan the Company an aggregate of $300,000 (over a period of 120 days), of which an initial $75,000 has been provided. Cyber Safety, at its discretion, may loan to the Company up to an additional $150,000. Subject to
certain conditions, the loan is repayable 365 days after the last loan disbursement with no interest or equity provided."
Updated June 8, 2015
SecurityStockWatch.com: Thank you for joining us again today, Mark. What are the latest developments at StrikeForce?
Mark L. Kay: StrikeForce has actually been growing and continually changing its selling strategy very successfully from direct to indirect. We are just about completely through our channel development and with growing sales. We are now working with some very strong channel partners in the retail and other markets. We have also signed large contracts through our partners that will be live shortly and should be announced by our partners and then by us (such as in the insurance and consumer markets). You should see some big names hitting around late summer through to the fall timeframe and into next year. Our revenues are expected to increase and in a big way. This process took us over a couple of years. We have also stopped taking money from funds that are based on conversions of our stock, even though some conversions are still remaining as we work to get through them.
SecurityStockWatch.com: Please give us an update regarding your MobileTrust Solution.
Mark L. Kay: That is a great question and we really are working on getting it out that will happen during this second quarter 2015, matter of fact, probably within the next few weeks to a month. The products are done and being tested by the iStore. Our Android product is already done and waiting for the iPhone product before we announce them both. Then shortly we will get out the SDK version of MobileTrust®, of which we already have many companies looking to buy it. The SDK protects any Android and Apple mobile devices from keyloggers, which we believe no other product does. It is very unique and we are anxious to be selling it. The MobileTrust® applications have many features and also protect mobile devices form keyloggers within the application browsers.
SecurityStockWatch.com: As we head toward the end of 2015 – please give us a financial update.
Mark L. Kay: It is hard to say, but our current financials lead to about half a million for the year. However, with all the deals now getting done and contracted we foresee the possibility for a very good year with at least buildup of over one million this year and many millions next year and continually growing. This could also be off by a large margin.
SecurityStockWatch.com: Where do you stand with your patent infringement case with Phone Factor?
Mark L. Kay: For those of you that didn’t know, we just had mediation with Microsoft on this case and did not settle, but did keep the concept open. This case has been going on for almost two years and we do have a trial set for next February for which case we are prepared and hopeful.
SecurityStockWatch.com: What would you like the financial community to know about StrikeForce going forward?
Mark L. Kay: As you know I can’t say what anyone should do, however, we are stronger now than ever, the anti-virus programs are now known not to protect you from malware and we are starting to break-out with all of our unique products, including our MobileTrust® and related SDK. Time will tell and we are definitely still in the game, now, stronger than ever with the market finally catching up.
Updated February 24, 2015
StrikeForce Technologies Releases GuardedID Version 4 of Its Keystroke Encryption Technology
Over $1Billion Dollars in Data Breaches Could Have Been Prevented
StrikeForce Technologies, Inc. (SFORD), a company that specializes in Cyber Security solutions for the prevention of Identity Theft and Data Breaches, announced today the release of GuardedID ® v4 of its multi-patented (8,566,608, & 8,732,483) Anti-Keylogging Keystroke Encryption technology.
"Data breaches are skyrocketing out of control, and the fact is that the majority of them were preventable," says Mark L. Kay, CEO of StrikeForce. "In just the last two years companies like Target, Home Depot, JP Morgan Chase, Michaels, Neiman Marcus and CitiBank all had data breaches that could have been thwarted by our GuardedID Anti-Keylogging Keystroke Encryption technology. Just last week, over 100 Banks throughout Europe fell victim to a sophisticated cyber-attack that was estimated to net the hackers over $1Billion dollars. The malware tool that the hackers relied on in that breach was a keylogger, which GuardedID prevents."
Keyloggers, are a type of malware with a single purpose, steal everything typed onto a keyboard (i.e. usernames, passwords, social security numbers, credit card numbers and confidential, sensitive information). The viruses and trojans that the hackers use to deliver the keyloggers are designed to automatically avoid detection from all Anti-Virus and Anti-Malware programs, which is why every individual and company needs GuardedID.
"Our GuardedID Keystroke Encryption technology was designed to take a very different approach to protect an individual or corporate user, instead of trying to stop the malware from getting on your computer, GuardedID proactively encrypts each and every keystroke in real time, not giving the keylogging malware access to your keystrokes. We now have a number of deals with GuardedID rolled out over the next couple of months, which will greatly increase our revenues. Stay tuned," says Kay.
Our GuardedID v4 now comes in a "Standard" and "Premium" version, the Standard version now protects all five browsers (IE, FF, Chrome, Safari & Opera), while our Premium version protects the same five browsers as well as all other programs on your computer (i.e. MS Office, VPN clients, IM clients, tax and accounting programs, etc).
Updated October 29, 2014
StrikeForce Technologies Inc. Announces Cino Ltd., as a Global Cyber Security Distributor
StrikeForce Technologies, Inc. (OTCQB: SFOR), a company that specializes in Cyber Security solutions for the prevention of Identity Theft and Data Breaches, announced today that Cino Ltd. has signed on to distribute StrikeForce’s Cyber Security Solutions.
“We are very pleased that Cino Ltd. has partnered with us to distribute our Cyber Security products,” says Mark L. Kay, CEO of StrikeForce. Cino Ltd. is a leading Security Systems Integrator that understands today's ever changing cyber & technological threats.
The Cino Ltd. Security team offers Security Analysis, Vulnerability Assessment, Full Penetration Testing, and Cyber Forensics. Joseph Saracino is President and CEO of Cino Ltd. and has served in the United States Navy as a Naval Intelligence Officer for more than 30 years and continues to be active as a Military & Education Liaison, VA Certifying Official, as well as a Global Yellow Ribbon presenter to Active Duty troops and Reserve Personnel. He also continues to consult to Homeland security and Joint Military Task force commands.
“We here at Cino Ltd. are excited to distribute throughout our National and International family of clients the full range of products offered through Strikeforce Technologies.
Our position is to bring to market relevant and targeted products that impact our clients in a positive way. We specialize in the areas of Hospitality, Healthcare, and Retail industries to name a few. We strive to keep our clients in a safe and secure cyber environment by adding to our portfolio the full array of products Developed by Strikeforce Technologies.” – Joseph Saracino, President and CEO, Cino Ltd.
Updated September 16, 2014
StrikeForce Technologies, Inc. (OTCQB: SFOR), a company that specializes in Cyber Security solutions for the prevention of Identity Theft and Data Breaches, announced today the release of its patented GuardedID® Anti-Keylogging Keystroke Encryptiontechnology for Apple computers and desktops. This product release has a projected direct effect to the anticipated increase in revenues through the rest of 2014 and 2015.
“We are extremely pleased about the launch of GuardedID for Apple,” says Mark L. Kay, CEO of StrikeForce. “The drastic increase and usage of keylogging software has led to most of the largest data breaches in history (i.e. Target, RSA, Community Health Services, Facebook, Citibank and other breaches). The Apple community has been quite concerned about the keylogging epidemic and has requested that we build an Apple version of our popular Windows based keystroke encryption software, which has been downloaded to over seven million computers, in over 100 countries. We are very happy that we can now finally accommodate their request, and protect Apple computers and desktops from keylogging malware.”
“The exponential rise of keylogging malware for the purposes of breaching a company, or, stealing someone’s identity is at an all-time high. The reason why this type of malware is so successful is because this new breed of keylogging malware is designed to avoid detection from all anti-virus programs,” says Kay. In an interview with the Wall Street Journal on May 7th of this year, Symantec Corporations Senior Vice President Brian Dye stated that “Anti-Virus is dead”, and that Symantec would now start to concentrate on minimizing damage, rather than to keep the hackers out. This stunning admission has finally opened the eyes of the anti-virus advocates to stop drinking the anti-virus Kool-Aid and deploy a pro-active and preventive solution like GuardedID.
“GuardedID’s multi-patented Anti-Keylogging Keystroke Encryption technology takes an entirely new approach to preventing keylogging malware. Instead of trying to prevent malware from getting onto your computer, GuardedID encrypts each and every keystroke in real-time, instantly when typed onto your keyboard, therefore, never allowing the keyloggers to see your actual data,” says Kay. To watch the video of how GuardedID works, click here.
GuardedID comes in both a consumer and enterprise version, for Windows and now Apple computers. To learn more about GuardedID and to purchase it, users can go to our website atwww.guardedid.com, or, call us at (732) 661-9641.
Updated September 10, 2014
Mark joined SFT in May 2003. Previously, he was an established leader, CIO and Managing Director at JPMorganChase over the past 25 years. During his employment at JPMC he led strategic and corporate business groups with global teams up to 1000 people. His responsibilities also included Chief Operating Officer and Global Technology Auditor during his tenure. His business concentrations were Securities (Fixed Income and Equities), Proprietary Trading & Treasury, Global Custody Services, Audit, Cash Management (including Money Transfer and Demand Deposit), Corporate Business Services and Web Services. Prior to JPMC, Mark was a Systems Engineer at Electronic Data Services (EDS) for over five years, where he developed his technical and people skills. He holds a B.A. in Mathematics from CUNY.
SecurityStockWatch.com: Thank you for joining us again today, Mark. There have been many positive significant developments at StrikeForce since we sat down together about 1 year ago. Please update us on recent developments at the SFOR.
1-Mark L. Kay: The biggest recent development relates to our new mobile products. Our mobile products are now finally completed and ready for production and literally waiting for final acceptances. Once approved we will push out our proprietary MobileTrust® application to all Android and Apple users through the Apple and Google Play stores, distributors, a new retail distributor channel planned for 4th quarter and with deals already signed for revenues that were waiting on MobileTrust and inclusive of offering it to millions of people with other interested enterprises that wanted MobileTrust about a year ago that we remain in contact with. MobileTrust is the only mobile application that offers secured keyboard and secured browsing, along with other functions, for all Apple and Android mobile devices, plus we have two keystroke encryption patents that protect the MobileTrust Application.
2-The second biggest development is the completion of our GuardedID MAC version about to be announced within the next few weeks. This clearly took a lot longer than expected because of the difficulty of what we accomplished, which is providing keystroke encryption protection on all MAC 64 bit computers. There is no other product that offers keystroke encryption on MAC computers that we could find. This product also has distributors, some announced and others, that have deals in place to push GuardedID MAC out to millions of potential buyers.
3- The third new product we have mentioned is our GuardedID Mobile SDK, which is for embedding in enterprise and government mobile applications to provide our proprietary and patent protected secured keyboard functionality. This product is ready, however still needs about another month or so of testing, documenting and licensing before it is production ready. We already know of a number of large highly interested potential buyers, as mobile applications and the need for greater preventative security increases exponentially, especially in the healthcare and financial industries.
SecurityStockWatch.com: Daily headlines seem to confirm that the time is right for StrikeForce solutions. The Target breach is still causing repercussions, UPS was recently hacked, and Russian hackers recently stole over 1 billion passwords. Concern about authentication and cybersecurity has never been higher. Care to comment?
Mark L. Kay: Martin, thanks for this question and you couldn’t be any more correct. Today alone was the article that Russian hackers stole gigabytes of data from JP Morgan and other banks. The breaches keep growing and the compliance requirements keep increasing. Just a few days ago there was an article that the State and Federal Governments (link to this article here) are looking to pass new legislation that heavily penalize enterprises that don’t take actions to prevent data breaches. It alluded to fines of $5 million and more pointing to the healthcare industry as an example. Some states already passing related legislation. With our Cyber Security proprietary patented products, we see our revenue opportunities continuously increase for the attack news.
SecurityStockWatch.com: Please update us on your patent and litigation efforts.
Mark L. Kay: There isn’t much I can say relating to our Out-of-Band Authentication patent litigation filings until there are decisions and additional public filings, but I can say our lawsuit against Phone Factor, who was acquired by Microsoft almost a year ago is progressing through the discovery phase, which could complete this Fall. StrikeForce and our patent lawyers remain positive as to our position in this case. We are very aware of the many other competitors with Out-of-Band Authentication. It is fair to say StrikeForce will do everything in its power to protect our Out-of-Band Authentication Patents (now three) going forward.
Additionally, we now have two patents for Keystroke Encryption and are discussing our options in protecting these patents as well. We also have pending patents for both technologies and a third patent pending for MobileTrust.
SecurityStockWatch.com: What is your multi-channel marketing strategy?
Mark L. Kay: Martin this is a great question since we are heavily focused on our channel strategy and new distributors and partners going forward. Many of our new client opportunities are through our new distributors, which is a good way to increase sales and revenues without increasing operating and marketing costs. True, we provide standard discounts to them, but very quickly will see the revenue upside surpass the discounts which quickly benefits StrikeForce, our shareholders and investors. Many of the new opportunities, and especially the larger ones mentioned under the MobileTrust sales opportunities above, come through our new channel partners.
SecurityStockWatch.com: Congratulations on the recent win regarding Logical Source as a new distributor. Can you tell us more? Any other success stories you’d like to mention?
Mark L. Kay: Logical Source is testing our products for their clients and getting close to deploying and selling them. Their primary focus is in the healthcare industry, which is the hottest industry for protecting against Cyber Theft. New regulations relating to HIPAA now require a security assessment to be on file including how the enterprise will protect its data from hackers in order to pass their audits. This is one of many amendments for increased security in the healthcare industry as all data goes digital and mobile.
SecurityStockWatch.com: We understand that the ProtectID Two-Factor Authentication Platform now protects Microsoft Office 365 and according to Microsoft - SharePoint is used by 78% of Fortune 500 companies. Care to elaborate?
Mark L. Kay: StrikeForce has had a few client quiries to provide them Out-of-Band Authentication for SharePoint applications and now that we completed it, these new client opportunities are in progress. Having this capability clearly provides for greater opportunities and more importantly not to lose ones for lack of not having this interface functionality.
SecurityStockWatch.com: Any updates on SFOR financial strategy that could help slow down or stop the heavy dilution?
Mark L. Kay: Martin, that is a very fair question that many ask me these days and I always take the time to answer as best as I can. The way I answer them, with what I can say, is we believe our revenues will grow enough over the next six months or so with the potential success I laid out in the first question and answer relating to recent developments, to no longer (or a lot less) needing typical convertible funding, thereby greatly reducing the dilution. To cover us during this growth period, we are in discussions with a few parties looking at several new longer term less dilutive financial strategies.
SecurityStockWatch.com: Thank you again for joining us today Mark. Are there any other subjects you care to mention?
Mark L. Kay: Martin, I greatly appreciate the time today to provide this critical update. It is definitely worth keeping an eye out on news we expect to publish over the next few weeks or so relating to our new products and additional sales opportunities with new distributors and others. Combine this with the data breach and hacking news coming out every day lately, we believe we are finally able to grow the revenues and turn the corner for StrikeForce. For those of you that have remained with us as shareholders, investors and/or friends of the Company, our sincere appreciation and thanks.
Updated July 31, 2014
StrikeForce Technologies, Inc. (OTCQB: SFOR), a company that specializes in Cyber Security solutions for the prevention of Identity Theft and Data Breaches, announced today that ProtectID® now supports Microsoft Office 365.
"We are very pleased that our ProtectID Two-Factor Authentication Platform will NOW protect Microsoft Office 365," says Mark L. Kay, CEO of StrikeForce. "ProtectID will secure Office applications via integration into Active Directory Federation Services (ADFS). A number of our current and pilot clients are looking for this capability and many others are moving in this direction. According to Microsoft, SharePoint is used by 78% of Fortune 500 companies."
Active Directory Federation Services is the component within Microsoft® Windows Server™ that provides web Single Sign-On (SSO) technologies through federation using standard authentication mechanisms such as Security Assertion Markup Language (SAML) and Kerberos. Microsoft applications secured by ProtectID now include:
- Azure cloud services
- Exchange Online
- Lync communications services
Microsoft Office 365 gives SMB's and all sized companies the opportunity to access advanced IT services and solutions without the need to manage programmers in house -- or even have any IT expertise. Employees can gain anywhere access to the programs they use on their office PC -- such as Word, PowerPoint, Outlook, and Excel. This ensures they can work more effectively when away from their desk, using a laptop, tablet or smartphone.
"Authentication is required more now than ever with Microsoft Office 365's increasingly wide low cost access to your enterprise's secured applications. The ProtectID Authentication Platform is a solution that provides the greatest number of authentication methods, options and patents to protect you and your company," says Mr. Kay.
StrikeForce Technologies helps to prevent cyber security online. Its products help protect consumers and their families while banking and shopping online, and businesses in "real time" against data loss and breaches. StrikeForce Technologies, Inc. (OTCQB: SFOR) is headquartered in Edison, N.J., and can be reached at www.strikeforcetech.com or by phone at (732) 661-9641 or toll-free at (866) 787-4542.
Updated July 16, 2014
StrikeForce Technologies, Inc. (OTCQB: SFOR), a company that specializes in cyber-security solutions for the prevention of identity theft and data breaches, announced today that Logical Source, Inc. has signed on to distribute its products.
"We are very pleased that Logical Source has signed on to distribute our products," says Mark L. Kay, CEO of StrikeForce. "Logical Source is a leading provider of health information services to small to mid-size businesses, public and private institutions, and Fortune 500 corporations for over 20 years. Logical Source also benefits from its partnerships with leading professional associations that set the standards for the industry, such as the American Health Information Management Association (AHIMA), the American Records Management Association (ARMA), and the Association for Information and Image Management (AIIM)."
"Health care organizations are besieged by cyber-attacks," says Jon Demarest, CEO of Logical Source. "In light of all the new HIPAA regulations, I believe that our healthcare clients will want to protect patient information by deploying StrikeForce's GuardedID® and MobileTrust® keystroke encryption applications."
"It's apparent that these data breaches are occurring because of the over-reliance on anti-virus programs, which no longer protect anyone," says Demarest. "Already, a few of our hospital clients are looking to deploy GuardedID for critically-needed security to help prevent data breaches. Some of our clients in other markets are also interested in StrikeForce's ProtectID® Out-of-Band Authentication to prevent hacking, and MobileTrust and GuardedID Mobile SDK products to prevent data leakage."
Logical Source will offer StrikeForce products and services to their healthcare clients in order to help prevent medical identity and records fraud. For example, "A typical medical record will sell for about $50 per record. Compare that to a Social Security number, which sells for about $25....one third of medical identity fraud victims had to pay for a procedure they never had. The average cost for this group of people was $18,000." ("Hackers Are Profiting from Your Medical Records," www.nbccnnecticut.com, May 6, 2014).
Updated May 28, 2014
StrikeForce Technologies Releases its 1st Quarter 2014 10Q Financial Results
Remains Bullish on 2014 Projections
Please click on the following link if interested in listening to the presentation by StrikeForce Management.
StrikeForce Technologies, Inc. (OTCQB: SFOR) reported on May 20th
its 1st Quarter 2014 Financial Results, which shows a decrease in net revenues as compared to 1st Quarter 2013, while remaining bullish on the 2014 annual gross sales projections.
“StrikeForce and its global sales channel are signing new planned deals that potentially could be strong revenue producers during 2014 and beyond. StrikeForce’s revenues for the 1st Quarter ended March 31,2014 was $90,901 compared to $160,991 for the 1st Quarter ended March 31, 2013, a decrease of $70,090 or 43.5%, primarily due to the decrease in sales of our GuardedID® keystroke encryption sales resulting from our initiated litigation due to our claim of a breach of contract by one of our partners, along with delays in realizing revenues from some of our new distributor’s clients, and in delayed rollout of our new mobile security technologies.”
“StrikeForce remains very positive about our near and long term future, even more now than ever. Our patent portfolio continues to grow; we have signed new agreements with partners and them with their clients in the US and abroad that will be announced in time. Based on current agreements and their minimum sales potential, we already anticipate reaching our minimum potential projections stated for 2014,” says Mark Kay, CEO.
StrikeForce is pleased to announce in keeping our tradition, the Company’s 1st Quarter March 31, 2014 10Q WebEx Presentation to be available on our website for you to see and listen to sometime starting Wednesday, May 28th, where Mr. Kay, joined by Mr. Ram Pemmaraju (CTO) and Mr. George Waller (EVP), will walk through a presentation of the 1st Quarter March 31, 2014 results, an update on our patents, patent litigation and our 2014 business outlook from a technology and sales perspective. Anyone interested in asking any questions relating to our 1st Quarter March 31, 2014 10Q filing, please email your questions to 1stQuarter2014Review@strikeforcetech.com for us to consider to respond to during or after the WebEx presentation.
Detailed financial data and other information is now available in StrikeForce Technologies, Inc. Form 10Q on the StrikeForce website and www.sec.gov, for the first quarter ending March 31th, 2014.
Updated May 13, 2014
StrikeForce Technologies, Inc. (SFOR.QB), a companythat specializes in Cyber Security for the prevention of Identity Theft and Data Breaches,announced today that it has been granted its third patent for “Multi-Channel Device Utilizing A Centralized Out-of-Band Authentication System” from the United States Patent Office (Patent No. 8,713,701).
“Being awarded this third patent and with one pending for Out-of-Band Authentication is a big win with great timing for StrikeForce,” said Mark L. Kay, CEO. “The mobile claims covering mobile authentication applications further strengthens our sales position, while Cyber Security has become the #1 security issue for banks, health care providers, law firms, insurance companies and many others; as well as in our continuing efforts to enforce our patents through licensing and litigation against potential infringers such as Phone Factor and First Midwest Bancorp for starters.”
According to research firm IDC, employee-owned smart phones accounted for more than 50% of business smart phones sold in 2013. According to Forrester’s 2013 Mobile Workforce Adoption Trends report published February 4th, 2013, “BYOD includes the 258 million global information workers who chose their own laptop and also the 129 million workers who paid for a smartphone for work.”
"We are very excited about this extensive market opportunity that our ProtectID®Out-of-Band Multi-Factor Authentication product provides for mobile devices. ProtectID is perfectly positioned at the intersection of the hottest three trends, Mobility (e.g. iPhone, BlackBerry and Android devices), Cloud Computing (e.g. Google & Salesforce) and the Steep Rise of Security Threats (Man in the Middle Attacks, etc.) as shown with some of our new clients and distributors,” says Kay. Our Patented ProtectID Out-of-Band Mobile Authentication Technology can be used for the following:
Secures access to Social Networking websites i.e. Facebook, Twitter, YouTube, etc.
· Protects online banking access
· Protects online healthcare access by all, now required
· Protects Remote Access for employees, meets 2-Factor Authentication compliance
· Government – Protects critical infrastructure and citizens against cyber attacks
Updated April 16, 2014
StrikeForce Technologies, Inc. (OTCQB: SFOR), a company that specializes in Cyber Security solutions for the prevention of Data Breaches and Cyber Theft, announced today that two of its key GuardedID marketing partners have experienced a dramatic 84% increase in sales during the first quarter of 2014.
"We are extremely pleased, but not surprised with the increase," says George Waller, Executive Vice President of StrikeForce, "since we have been preaching about the dangers of keyloggers for years, and have been telling everyone that they need to proactively encrypt data at the point of origin, when it's typed into any device, as well as while it's in motion. Unfortunately due to the latest barrage of breaches people are starting to be affected and get it."
"According to the 2013 Verizon Data Breach Investigations report, 69% of data breaches reported in the past three years were caused by malware, of which 89% were keylogging malware, which were used to successfully steal user credentials 98% of the time," continues Waller. "That's why protecting data at the point of origin and in motion is so critical. That's also why regulators like the PCI Council now require encryption for Data-in-Motion to be compliant."
"While the 84% increase in GuardedID sales is great for the bottom line, even though starting from nominal levels, what's even more exciting is that we are being solicited on a daily basis by new potential marketing partners that want to build our patented GuardedID Keystroke Encryption into their marketing programs and bundles. We see this as a positive financial opportunity for StrikeForce in 2014 that will build up over the year and go a long way in reaching our 2014 projections," says Mark L. Kay, CEO.
"In addition to our GuardedID Keystroke Encryption for PCs and now MACs, we have just launched our MobileTrust beta program which includes our GuardedID Keystroke Encryption mobile products for the keyboard and browser on all Apple or Android smartphones and tablets. Each of our marketing partners sees a real opportunity to bundle our patented keystroke encryption protection for both your PC and your mobile device," says Waller.
Updated March 25, 2014
StrikeForce Technologies, Inc. (OTCQB: SFORD), a company that specializes in Cyber Security solutions for the prevention of Data Breaches and Cyber Theft, announced today that it has received an official Notice of Allowance from the United States Patent Office stating that a second patent application titled "Methods and apparatus for securing keystrokes from being intercepted between the keyboard and a browser" has been approved for issuance.
"We are extremely excited about receiving this Notice of Allowance for our Keystroke Encryption technology," says Mark L. Kay, CEO of StrikeForce, "it has game changing implications for our Company and the industry. This expands on our original patent and includes: all computers, smart phones, tablets, and all the keystrokes you enter. Our patented Keystroke Encryption technology proactively encrypts each and every keystroke typed on a keyboard. All security experts agree that the use of encryption is the best way to protect data on your mobile device," continues Kay. "Until we developed our Keystroke Encryption Technology for mobile devices, there wasn't any way to encrypt data in motion at the point of origin, when typed on a mobile device keyboard."
"Additionally, as announced two weeks ago on March 11th, StrikeForce has received an official Notice of Allowance from the US Patent and Trademark Office that we have been approved for Issuance of our third patent for Out-of-Band Authentication," says Kay. "Our patent portfolio continues to increase. After these two Notices become patents, StrikeForce will then own five patents in our portfolio, and there will still be three more pending. Owning the patents for Keystroke Encryption and Out-of-Band Authentication positions us on the forefront of what is hot in security and regulatory requirements today, as seen through our new contracts and increasing pipeline. As we learned at the recent RSA Security Show, these are the types of product purchasesnow being included in security budgets. Our increasing patent portfolio also improves our value as we continue to protect our intellectual property assets."
The timing of this Notice of Allowance coincides perfectly with StrikeForce's recently announced two new mobile products (MobileTrust® and GuardedID® Mobile SDK). Both products already include our patented keystroke encryption technology and should be available within the next thirty to sixty days. Individuals and Corporations will now for the first time, be able to protect themselves with our MobileTrust application, while mobile application developers will be able to build our one-of-a-kind Keystroke Encryption technology directly into their mobile applications.
"Keystroke Encryption is an extremely critical security technology, which plays a major role in preventing the most widespread malware from stealing confidential data from mobile devices," says Kay.
Updated March 19th, 2014
StrikeForce Technologies, Inc. (SFORD.QB), a company that specializes in Cyber Security solutions for the prevention of Data Breaches and Cyber Theft, announced today that Blank Rome LLP, a top 100 law firm has licensed StrikeForce’s ProtectID Outof-Band Two-Factor Authentication Platform to protect remote access and their clients Intellectual Property.
“We were extremely pleased that Blank Rome has chosen to deploy our ProtectID Out-of-Band Two-Factor Authentication Platform,” says Mark L. Kay, CEO of StrikeForce, “Blank Rome has been in business for more than sixty five years and is amongst the most prestigious Law Firms. They realize the importance of protecting network access and the intellectual property of their customers.”
“As part of our effort to continue improving the Firm’s overall security posture, Blank Rome decided to employ two-factor authentication to bolster the security of remote access to the Firm’s network. After being introduced to StrikeForce Technologies’ solution, we liked their approach to out-of-band authentication. We knew anything we implemented for this purpose had to be easy to use, as well as being secure and flexible. StrikeForce’s system achieves this simplicity and flexibility by supporting a variety of methods to input the second factor, and it also is economical and easy to implement,” says Laurence Liss, CTO of Blank Rome.
“For a long time now, law firms have worked under the implicit assumption that they were not targets of hackers. Law firms thought of themselves as above the rough and tumble world of spying and IP theft. However, all of that has changed,” says Kay. “Law enforcement agencies throughout the world have warned of an increasing threat of hacking to law firms. These concerns have escalated to such an extent that the White House, the Attorney General and the FBI are publicly warning law firms to tackle the escalating risk of cyber attacks.”
“Working with law firms to protect their remote access and intellectual property is now high on our radar, just within two months we helped Superior Discovery with similar concerns as they service many prominent law firms,” says Kay.
Updated February 4, 2014
StrikeForce Technologies, Inc. (SFOR.QB), a company that specializes in Cyber Security solutions for the prevention of Data Breaches and Cyber Theft, announced that they will be launching two mobile products at this year’s annual RSA Security Conference, February 24th – 28thin San Francisco, CA.
“We are very excited about launching GuardedID Mobile™ and MobileTrust® at this year’s conference,” says Mark L. Kay, CEO of StrikeForce,"both products deliver an unprecedented level of mobile security that until today, just hasn’t been available and timing couldn’t be any more perfect.
”GuardedID Mobile is a Software Developers Kit (SDK) and it’s the industry’s “only” patented(#8,566,608) Keystroke Encryption Technology available for Apple and Android mobile applications.GuardedID Mobile enables mobile application developers to embed keystroke encryption directly intomobile applications, preventing cyber theft and data breaches due to the latest and growing mobilemalware. GuardedID Mobile was designed to minimally protect the following applications from dataloss: eCommerce, Banking, Healthcare, BillPay, Loan, Government, Corporate and Consumer applications.
MobileTrust® is the industry’s most advanced security suite for Apple & Android mobile devices,protecting user credentials, passwords, online transactions and access to corporate networks. TheMobileTrust bundle includes four of the most powerful must-have security features that every enterprise mobile user needs to be secure, which are, AES 256 Bit Encrypted Password Vault, a Strong User Definable Password Generator, an OATH compliant Two-Factor Authenticator and an EncryptedKeyboard & Browser.
Mark Kay, StrikeForce’s CEO, will also be presenting at the 10th Annual America’s Growth CapitalWest Coast Conference at 8:30am on February 24th in the Westin. Also please visit us at the RSA Security Show at our Booth #821 in the Suth Exhibit Hall in Mascone Conference Center.
Updated January 7, 2014
StrikeForce Technologies Reports on 2013 Year in Review and a Sneak Preview of 2014
Company Notes Continual Sales Growth and Strong Demand for Products
In looking back over 2013 and into 2014, StrikeForce Technologies, Inc. (OTCQB: SFOR) is providing insight into the State of the Company.
STATE OF THE COMPANY
We believe opportunities for StrikeForce Technologies, Inc. ("Company") are progressively promising, as we see that demand and sales of our products are growing, even though not as fast as we projected in 2013. Cyber Theft and data breaches are increasing at a faster pace and in the news almost every day with reports on Data Breaches (e.g. Target, Living Social, Federal Reserve, State of Maryland), Viruses stealing keystrokes (e.g. Facebook, Twitter, Gmail) and phishing attacks (fake websites - IRS, banks). Financial institutions are being sued and losing, and cybercrime statistics in our opinion, are projected to be into the trillions of dollars globally. In conjunction with this news, regulations focusing on protecting information are gathering strength with emphasis in the financial (FFIEC), healthcare (HIPPA), consumer (PCI) and now legal markets. If you then include various articles that state "...it is only a matter of time before your mobile device is hacked, if it isn't already," StrikeForce management contends that demand is increasing specifically for the types of features and capabilities that StrikeForce Technologies' patented and patent pending products deliver. All of this translates, in our estimation, into the potential for substantial sales and revenue growth in 2014 as the Company begins to exploit the mobile market and reaches its Vision of "Making the World a Safer Place." A detailed 2013 Year in Review and A Look Forward into 2014 is available on the StrikeForce website by clicking HERE.
SecurityStockWatch.com Thank you for joining us today, Mark. Before we drill down into recent developments at StrikeForce Technologies, please tell us about your background and please give us a brief history of SFOR.
Mark L. Kay: Thank you for the opportunity to be interviewed by SecurityStockWatch.com. I come lastly from 26 years as a Managing Director at JPM responsible for many different technology and operation leadership roles with organizations globally, especially in developing JPM’s brokerage business (systems and operations) from scratch beginning in the late 1980’s. I retired JPM in January of 2003 and sort of by accident ended up as an investor first, then the CEO of StrikeForce Technologies, Inc. in May 2003. SFOR was incorporated in late 2001 and is a corporation focused on research and developing products that prevent identity theft, now known as a Cyber Security company. Ram Pemmaraju is our CTO, co-founder and inventor of our products and came with over ten years’ experience at AT&T/Bell Labs. He is the inventor of Out-of-Band Authentication and keystroke encryption, for which we now own patents for both products. If we are ever to be blamed for anything, it is for being too far ahead of our time. However, unfortunately for the business world, Cyber Theft is now very hot and many articles talk about how the problem is continuously getting worse and can’t be stopped. The better news is we developed multiple products early that StrikeForce perfected over time that actually prevent many of the current Cyber Thefts, versus the majority of companies that either copy our concepts or provide solutions to deal with the thefts and data breaches once they have occurred and already did their damage. I am sorry, but that is not what the solutions should be focused on, especially when there are preventive solutions with products like StrikeForce’s that prevent the cyber theft and data breaches from occurring in the first place.
SecurityStockWatch.com: One will read on www.StrikeForceTech.com that the Company “…helps to prevent online identity theft and data security breaches for consumers, corporations, and government agencies. It provides powerful two-factor, “Out-of-Band” authentication, keystroke encryption and mobile solutions.” Please give us an overview of the ProtectID® , GuardedID® and MobileTrust® solutions StrikeForce brings to market.
Mark L. Kay: The three products all work separately, yet in combination to provide Cyber Security solutions that is proven to be critical in all markets where personal, confidential and critical corporate and government data and information is processed and stored, which today is probably every market since most if not all data is online today and increasingly going forward. A great example is the new regulations for healthcare medical records to be online starting by early 2014 requiring two factor authentication.
ProtectID is sold to companies and government agencies to protect all of their employees and/or clients, consumers, consultants and anyone accessing their network, applications and data. ProtectID offers many methods of two-factor authentication inclusive of “Out-of-Band” authentication methods that meet the regulations requirements, and according to the 2013 Verizon Data Breach Report, 80% of all the data breaches they reported would have been prevented if the companies breached purchased ProtectID and it still isn’t too late.
GuardedID is a keystroke encryption product that runs on each and every computer and encrypts all the keystrokes entered into a computer and all the keystrokes typed onto a smart phone (through our encrypted keyboard), which prevents many, if not all, the malware that attempts to steal your keystrokes, such as the American Banker article that came out Friday, September 20, 2013 announcing a new Trojan variant that steals your keystrokes. The key point about this product is most people still don’t realize that their anti-virus programs basically don’t prevent anything real time or at all, especially keylogging malware. The perfect example is that all of the companies that experienced the reported data breaches have anti-virus programs installed.
MobileTrust is our newest invention that we are proud to announce that is in beta testing. This product offers many critical security features for the iPhone, iPad, all Droid devices and others in the future. These features include a password vault, a one-time password generator for our ProtectID Authentication platform, as well as any that utilizes oath compliant one-time passwords, keystroke encryption with our proprietary secured keyboard and browser with other features. This should be available in the Apple Store and Google Store in early 2014.
SecurityStockWatch.com: ID Theft and cybercrime seem to be front page news every day of the week. What is your perspective on the size of this market?
Mark L. Kay: You couldn’t be more accurate. One of the latest articles I saw approximately last week in Banking Technology News, talked about the market going into the hundreds of millions and never slowing down. Other articles in the past noted Cyber Security is a market into the billions globally and continuously growing. A recent article in CNBC on August 13th stated, “…cyber-crime is worth around $400 Million annually.” As mentioned earlier, the news today from American Banker and the 2013 Verizon Data Breach reported earlier this year, shows the continued growth in Cyber Thefts with emphasis on keylogging malware is mainly because it is easy and the thieves (often governments and large underground organizations) have proven to prefer the easier methods of stealing and or causing embarrassments such as through Facebook, Twitter, Citibank, FRB, New York Times, banks, healthcare providers and many other breaches reported over the past year or so. Another article that came out a few weeks back in Banking Technology News highlighted a statement that “.. McAfee now counts 147 million types of malware in its database” in discussing how malware is now hitting Androids and other mobile devices.” Imagine the malware they don’t know about. What this all means for StrikeForce is that our market keeps growing globally and still at a very early stage of opportunities. Even though that is causing more vendors to get involved, owning the patents and having products with the greatest breadth and depth are critical differentiators.
SecurityStockWatch.com: What are your key target markets? It seems to us that highly regulated sectors such as the financial and healthcare markets would be natural fits for your solutions. Do we have that right?
Mark L. Kay: Absolutely. Coming from the large Wall St. firm as a purchaser of data security type products, it is the regulations and regulators that cause the purchase of security, contingency and the like products. We would like to think companies will buy security products to protect its clients and employees, however only to the degree they are required to by regulations, to keep their costs down, maintain their current clients and to keep their shareholders happy. However, the FFIEC guidance in financial markets is increasing in security guidance; HIPAA and other regulations in healthcare, such as all healthcare records need to be online in 2014, which requires two factor authentication for the millions of consumers, doctors, nurses, etc.; in energy with the NERC regulations and even for every public company being audited for SOX compliance, which deals with all types of controls now including authentication and starting to include keylogger malware solutions. In all cases, to reach the millions of consumers and clients StrikeForce needs to reach, this screams big time for “Out-of-Band” authentication, because it provides the greatest security at the lowest price and easiest for people to use. Of course this feeds right into our ProtectID Authentication platform, which offers the greatest breadth and depth of features, functions, methods and protected now with our two patents. The latest regulations and breaches also calls for our GuardedID keystroke encryption product that prevents keylogging malware that your anti-virus programs DO NOT prevent for the most part.
SecurityStockWatch.com: Any other target markets you care to mention?
Mark L. Kay: Definitely, we also have clients in the technology, telecommunications, security bundles for employee affinity programs, as well as all types of Cyber Security packages sold almost by everyone these days. A market that is probably one of the biggest opportunities for us going forward is the direct consumer market, as in selling our GuardedID product on our www.guardedid.com website. However, to successfully sell direct to the consumer market takes millions of dollars to tell the story, repeat it on TV, radio, newspaper ads, remind them that their anti-virus program don’t prevent the biggest malware threats out there today, etc. Therefore, we are looking for strategic partners and investors to partner with us for this market opportunity and probably a multi-million dollar potential for anyone that gets involved with us.
SecurityStockWatch.com: We read with great interest about your recent “wins” with Melrose Credit Union and three additional "wins" in the government, legal and financial services markets. Care to elaborate?
Mark L. Kay: StrikeForce has definitely had some recent wins, even though with nominal revenues, they are major for closing our first credit union and our first government agency as clients. We are looking to leverage this in our marketing and media messages. It is a long uphill battle, but we are definitely on a path of winning the battle, especially in addition to having been granted our various patents. We are also in process of closing some critical deals in the legal market that we will announce them when appropriate. The legal market woke up with some of the latest pressure from the Whitehouse and the breaches by China relating to stealing the intellectual property of companies and inventors through the ease of acquiring the information through legal firm’s databases, etc. This was also reported in various recent media reports, since many legal firms and databases do not require two factor authentication.
SecurityStockWatch.com : Any “pilots” underway you’d like to mention?
Mark L. Kay: We have a number of new and ongoing pilots that we expect to close within 30-90 days, versus others that could take longer. Most of four new pilots are through distributors, which is our strategy for increasing sales that is commencing internationally. As a public company we aren’t allowed to give details of any pilots, but there are two in the legal market and a few in the international market, relating to all of our products that could play a major role in our increasing recurring revenues for the rest 2013 and throughout 2014.
SecurityStockWatch.com: In a global market such as this it makes perfect sense to market and sell via a channel strategy with Value Added Resellers (VARs). Please update us on the progress of your VAR network.
Mark L. Kay: Thanks for this question and this is strategic and critical to our future success. We have decided and maintained that our core competencies are our research and development of unique security software products which were ahead of their time as proven with our products and patents to date. Therefore, not planning in building a worldwide sales network, we have focused on growing an international distribution network that we are proud to announce has gained strength in Canada, Europe and Asia with efforts growing in the US and Latin America. StrikeForce has major opportunities proceeding in Europe, Canada and the US that we hope to announce over the next couple of months. We are focusing on security software distributors and open to talk to any interested distributor in presenting to their clients our best of breed authentication, keystroke encryption and mobile security applications with the patents to protect them.
SecurityStockWatch.com : Please give us a preview of the whitepapers available here for ProtectID, ProtectID Cloud Service, MobileTrust and GuardedID.
Mark L. Kay: All of our whitepapers are available on our website: www.strikeforcetech.com . These whitepapers discuss how we provide the best of breed security technology products and how they solve the most important problems in todays and tomorrows malware and data breach thefts as announced by the 2013 Verizon Data Breach report and many others.
SecurityStockWatch.com : Is a demo available where potential new customers and VAR’s can go for a test drive?
Mark L. Kay: Nothing we like better than to have everyone interested to demo and evaluate our products at NO COST (FREE) for up to a few months. We actually have a demo site on our company website www.strikeforcetech.com to play with our “Out-of-Band” authentication multi-patented product and willing to provide evaluation licenses to anyone looking to try our unique and proprietary keystroke encryption patent and beta test our new MobileTrust mobile application. If interested please just contact the office at (732)661-9641 in Edison, NJ. We love to hear from you.
SecurityStockWatch.com : Can we talk about the patents and litigation issue? Please describe for us the various patents issued to StrikeForce and the various litigation surrounding these patents.
Mark L. Kay: Our patents and current litigation in protecting our assets, is very encouraging and important to us, our investors and shareholders. It took us over seven (7) years to be granted the “Out-of-Band” Authentication patents for which we are clearly the inventor and owner. It also took us over four years to receive our “Notice of Allowance” for our keystroke encryption application. Our CTO and brilliant inventor, Ram Pemmaraju is the owner of the patents, all of which have been officially assigned to StrikeForce Technologies, Inc. As we have publicly announced, our “Out-of-Band” Authentication patents are the basis for our lawsuits to Phone Factor and some of their clients. Now that Phone Factor was acquired by Microsoft in the Fall of 2012, who announced they are using the Phone Factor “Out-of-Band” authentication product with no patents, is definitely an increasing opportunity for us that is moving towards full discovery. We understand this could take time, but should lead to financial revenues for StrikeForce. We are also aware of over a dozen additional vendors and their many clients that are also infringing on our “Out-of-Band” patents that we plan to protect and pursue all infringers at the right time. Now that we were awarded the Notice of Allowance for our keystroke encryption patent application, we already have a number of infringers we are considering to file complaints against once we are granted the keystroke encryption patent, which is only a matter of a few months. In addition we are in process and litigation against WhiteSky and therefore can’t comment on where that stands other than what is known in public records which is that it is moving forward towards full discovery. We won’t stop until we receive appropriate results on any and all that infringe on our patents now or in the future.
SecurityStockWatch.com : Thanks again for joining us today, Mark. Are there any other subjects you would like to discuss?
Mark L. Kay: I could go on forever, but I understand investors and shareholders need the facts and brevity, which I believe in and already covered. I just want to remind all reviewing this, that since we are public I can say, my family personally invested $2,000,000 in StrikeForce of which I haven’t taken anything off the table and seeing the greatest opportunity of my life still in front of us with StrikeForce Technologies, Inc. In addition, personally knowing many StrikeForce’s investors and shareholders, and communicate with many on a regular basis, I want StrikeForce to succeed equally for them as ourselves. The only win is a win for all involved. I urge any of you that want to know more to please come visit us in Edison, NJ and learn more for yourself why we are so excited, why StrikeForce, myself and my wife remain so bullish on our future. Our success appears more attainable since the world is now more focused on preventing keystroke encryption malware, and with the increasing regulations pushing for two factor authentication with emphasis on “Out-of-Band” authentication.
Thank you so much for the opportunity to be heard for all those reviewing this interview. Look forward to providing updates as we progress. Have a great day!